Burger King India - Whopper Of An Opportunity: Motilal Oswal Initiates Coverage

An illuminated namesign and logo of Burger King sits outside the restaurant. (Source: BloombergQuint).

Burger King India - Whopper Of An Opportunity: Motilal Oswal Initiates Coverage

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Motilal Oswal Report

Burger King India Ltd. offers an exciting investment opportunity in the Indian quick service restaurant space on account of the following factors:

  • The large Indian food service Industry is expected to deliver 9% compound annual growth rate over the coming years, and QSRs are best placed to tap this opportunity.

  • With their high affordability, aspirational branding, higher convenience, scale benefits, and technological edge, QSRs are expected to grow at 19% CAGR over FY20-25E.

  • Given that the unorganised segment has been severely affected by Covid-19, QSRs can make further gains due to their better hygiene standards and well-positioned alternate channels, especially delivery.

  • Burger King’s 'barbell' product strategy with focus on premiumisation at the top end and value products at the entry level makes it well-placed to drive same store sales growth and margin expansion.

Click on the attachment to read the full report:

Motilal Oswal Burger King Initiating Coverage.pdf

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